CoStar eyes ‘future revenue stream’ after blockbuster quarter 

CoStar continued to beat expectations with $781 million in revenue during the second quarter — a 15% year-over-year jump — as the company found success with bookings.

This marks the 57th consecutive quarter of double-digit growth, the company noted in a July 22 earnings call. Prior to the call, the Zacks consensus estimate had pegged revenue at $771.67 million.

Homes.com had a particularly strong second quarter, according to CoStar Group Founder and CEO Andy Florance. The home search portal added 6,300 members between early April and the end of June, a 56% increase compared to the end of March.

Florance also touted Homes.com's awareness growth since starting its major marketing campaign in 2024. Unaided awareness of the brand has grown from 4% to 36% in that time as the network averaged 111 million monthly unique visitors, he noted.

Homes.com will also be launching a new home listing section focused on listings from builders. Florance said they've secured 200 agreements, "positioning this new feature as a significant future revenue stream, enabling us to capitalize on a substantial market opportunity."

CoStar's stock jumped after the call, rising more than $2 a share the evening of July 22 and topping $90 per share on July 23.

Key numbers

Revenue: $781 million in the second quarter, up 15% year-over-year. 

Cash and cash equivalents: $3.63 billion at the end of Q2, down slightly from $3.68 billion at the end of Q1.

Gross profit: $613.5 million, up from $542 million in the second quarter of last year.

Net income: A gain of $6.2 million in Q2, down from a $19 million gain a year ago.

EBITDA (earnings before interest, taxes, depreciation and amortization): An $85 million gain in Q2, up from a $41 million gain a year ago.

Website traffic: The Homes.com network had 111 million average monthly unique visitors in the second quarter of 2025, up from 104 million in the first quarter. 

Future outlook: The company is boosting its adjusted EBITDA guidance for the full year of 2025 to $370 million to $390 million, a $10 million increase at the midpoint compared to earlier guidance.

Notable moves

Florance continued to rail against Zillow's new listing standards during the July 22 call, telling investors that he believes the tactic "raises serious antitrust concerns." Homes.com initially reacted to Zillow's new rules for listings by offering to "boost" listings banned on Zillow.

Shortly after the second quarter began, CoStar was also busy reshaping its board as it appointed a new chair and named three independent directors.

"With the strength and support of the refreshed board, CoStar Group is well positioned to extend its long track record of creating stockholder value," Florance said in an April news release.